Media release 16 October 2025
For three decades, the Insurance & Financial Services Ombudsman Scheme (IFSO Scheme) has helped New Zealanders navigate complex, stressful insurance disputes—free of charge and independent of industry.
In 2024–25, the IFSO Scheme accepted a record 600 disputes for investigation, 96% of which were about insurance.
Karen Stevens, the Insurance & Financial Services Ombudsman, says there has been a steady increase in disputes over the past three years.
“Changing expectations about what insurance should provide—especially as premiums increase—seem to be shaping how consumers feel about their insurance, and this is leading to more disputes being brought to the IFSO Scheme,” says Stevens.
Stevens says that for many insurance claims that get declined, there are valid reasons.
“For example, someone may not have followed the conditions in their policy, or there are exclusions which apply. While this can be very disappointing for the customer, we’re unable to uphold complaints where the policy has been applied correctly,” she says.
A recent case from the 2025 Annual Report highlights the importance of understanding policy conditions and taking reasonable care with valuable items.
Alex* and his wife returned from a trip with designer clothing and jewellery packed in a suitcase and bags. After dropping his wife at work, Alex parked at home but left the items in the vehicle overnight. The next morning, Alex discovered the car had been broken into and the items, valued at $31,000, were gone.
Alex made a contents claim, but the insurer declined it, saying that leaving high-value items in the car overnight—especially given a recent theft of a pair of shoes from their other vehicle—was a failure to take reasonable care, a condition in the policy. Alex made a complaint to the IFSO Scheme.
The IFSO Scheme considered whether the insurer could rely on the reasonable care condition to decline the claim. The investigation found that leaving such valuable items visible in the car overnight, particularly after a previous theft, created a significant and obvious risk. The case manager noted that Alex’s wife had expressly told Alex to take the items inside, and that a pair of designer sunglasses was left visible between the front seats.
On balance, the IFSO Scheme determined that by taking no precautions to secure or remove the items, Alex had failed to take reasonable care, and the insurer was entitled to decline the claim.
“Even if you have insurance, you need to make sure you take reasonable care of your property. Our role is to make sure decisions are fair, based on the policy, and on all the facts. Unfortunately for Alex, he wasn’t covered because he’d failed to meet the conditions in his insurance policy,” she says.
The case highlights the importance of understanding your insurance policy, says Stevens.
“The specific wording of ‘reasonable care’ obligations can differ depending on your insurance policy, so it’s important to review your own policy document to understand exactly what’s required,” she says.
Common reasonable care conditions include:
- Taking steps to protect and maintain your home
- Preventing further loss to your contents when they have been damaged
- Avoiding risky situations that could lead to damage while driving your car
- Ensuring your valuables are kept safe and secure when you’re travelling overseas.
Understanding and meeting these requirements is essential to make sure you’re covered when you need it most, says Stevens.
If people are not satisfied with their insurer’s decision after asking for a review, they can ask the IFSO Scheme to look into their complaint. Find more information at www.ifso.nz, call 0800 888 202, or email info@ifso.nz.
*Name has been changed.
ENDS
Media contact
Sarah Smythe
Communications Manager, IFSO Scheme
sarah@ifso.nz
021 292 4036